Small business survival during COVID-19
Time & Location
About the Event
The Norwegian American Chamber of Commerce Southwest Chapter have been following the US Authorities response to the COVID-19 in relationship to assistance offered to Small companies (less than 500 employees) like many of our members are. We would like to present two options that can be alternatives to Reduction in Force (layoff), Furlough (temporary layoff) and reduced hours work (potentially shifting from non-exempt to exempt employee).
Last week the CARES Act was approved by House, Senate and the President. Amon many funding opportunities in the CARES Act is an allocation of $ 350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. It offers loans up to 2.5x payroll expenses that will be forgiven if a set of parameters are upheld, most importantly that payroll expenses and number of employees are at the same level. Some of the forgivable loan can also be used at expenses such as office/workshop leas, utilities and so on. Loans will be given through local banks and credit unions (your business bank) and applications can be submitted as soon as these are ready to receive applications, most likely late this week.
Today the U.S. Chamber of Commerce distributed a poster describing the emergency loans. Please Click Here for the poster.
Another available program is the Texas Workforce Commission (TWC) Shared Work Program. By approved application small businesses can reduce work hours down to 60% for employees, which will receive unemployment for the remaining 40%. The Shared Work scheme is very flexible in relation to employee work hours. The company pay for the number of hours worked in a week (minimum 60% of normal) and unemployment covers the gap between actually worked an 100%. A company can be in the program for up to one year.
Please see this link for further information https://www.twc.texas.gov/businesses/shared-work#employeeEligibility.
Please note that there is a continuous stream of information being released and that it is likely that not all relevant information have been released as of yet. Hence, there might be some unknown restriction in getting approval for the above mentioned means.
NACC have appointed a contact person in relation to Small Business survival during COVID-19 who has been monitoring available means for a few weeks. If you have any questions you can contact:
Trond Olsen, President ClampOn, Inc. firstname.lastname@example.org, 281 536 9363.